The Fons decision: regulatory implications for parties to loan agreements
By Rosali Pretorius
In Fons Hf v Corporal Ltd & Anor, the Court of Appeal held, in the context of a specific agreement, that ‘debentures’ included loan agreements, on the basis that a loan agreement ‘creates or acknowledges a debt’. Although the Court of Appeal did not consider the regulatory impact of this conclusion, the decision nevertheless creates the unlikely possibility that loan agreements could be ‘specified investments’ under article 77 of the FSMA (Regulated Activities) Order 2001 (as amended) (RAO). This article explains why this is causing such concern to those involved in UK loan market activity.
Why is this potentially a problem? Article 77 RAO states that, subject to various exclusions not relevant for these purposes, ‘specified investments’ for the purposes of FSMA include ‘any…instrument creating or acknowledging indebtedness’…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Life in Canada is getting harder for firms as commodities prices fall and work volumes slow
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all